Biden Administration Extends The Student Loan Moratorium To End Of August

[Dashinka 24,718]

Not enough for some, too much for many others.  So here is the big question, if you have student loans and also have a good job, do you not make payments assuming at some point the debt will be forgiven and your burden placed on others, or do you keep paying?  I know when I was growing up, I was taught that debt I chose to incur was mine alone to pay back.

 

Biden Administration Extends The Student Loan Moratorium To End Of August

 

Don’t make those student loan payments just yet!

 

The Biden Administration is extending the student loan moratorium, which would continue to postpone student loan payments for millions of college graduates. Payments will now be paused through Aug. 31, and interest rates will remain at 0 percent, according to the Associated Press.

 

The new measure comes almost a month before payments were scheduled to resume again on May 1. Democrats in Congress pled with President Biden to allow borrowers more time to plan for payments, citing inflation and the ongoing COVID-19 crisis.

 

https://www.yahoo.com/lifestyle/biden-administration-extends-student-loan-130046605.html

[millefleur 5,047]

This is just Biden trying to save face with his base. He ran on a platform of loan forgiveness to court younger voters and now that he's back tracked on that, this is the bare minimum he can do. It's quite pathetic really. Also a bit weird that "inflation" is now an excuse to lower the interest rates down to 0%. Those of us who had student loans and had to live through the 2008 crisis and following recession got no such benefit.

 

I guess this is also some kind of "prop up the economy" thing, hoping they'll spend that money into the economy vs paying off the loans. Not sure if it's working though.

[Dashinka 24,718]

On 4/7/2022 at 3:04 PM, millefleur said:

This is just Biden trying to save face with his base. He ran on a platform of loan forgiveness to court younger voters and now that he's back tracked on that, this is the bare minimum he can do. It's quite pathetic really. Also a bit weird that "inflation" is now an excuse to lower the interest rates down to 0%. Those of us who had student loans and had to live through the 2008 crisis and following recession got no such benefit.

 

I guess this is also some kind of "prop up the economy" thing, hoping they'll spend that money into the economy vs paying off the loans. Not sure if it's working though.

I have no idea what the strategy of the Left/Dems is regarding this situation.  I am concerned that many of the students/graduates feel their expensive loans they themselves agreed to should now be payed for by other people.  When did the personal responsibility mentality change?  Why is the Brandon Administration even considering this action alienating a whole lot of independents and blue collar types that decided to not incur the massive debt these folks did?  In my job, I see a lot of recent college grads that I expect have some level of debt, these are folks in decent paying engineering jobs, I want to ask them if they are taking advantage of this student loan payment moratorium, but think twice given the wokiness that seems to be coming out the US universities now days. 

 

When I went to college, I had to take out a few student loans as for some reason universities seemed to think the cost of that level of education should have been paid for by the parents.  Well my parents had eight kids and were not going to pay for our college education outright particularly when several of my older brothers and sisters were all in college at the same time.  If we wanted to go to the university, we had to find our own way to pay for it (when did it become common that parents paid for college/university).  All-in-all, 5 of the eight of us went to college/university on our own dime(s) and we all did pretty good.  Even the three of my siblings that took a more vocational route were able to succeed showing that a college degree is not a requirement for success.  In my case specifically, aside from the few loans I took out, working multiple jobs, earning a degree I knew would pay for itself, my mom and dad did help a little, but it was always considered a loan, not a handout, and as I started working full time, I started paying off my loans including my mother and father and had everything paid off in less than 2 years.  

 

Personally, I think the US government in the form of easy to get student loans has prompted the schools to do everything they can to get this money, and these schools have no complaints that the degrees many of these students received are essentially worthless (and they called Trump U fraudulent), or that the US taxpayers will be on the hook for these poor choices these schools have been promoting.

Edited April 11, 2022 by Dashinka

[TBoneTX 45,873]

I think that any degree program with a name ending in "Studies" should be outlawed.

[Dashinka 24,718]

8 hours ago, TBoneTX said:

I think that any degree program with a name ending in "Studies" should be outlawed.

But how would these universities get all their money?

[TBoneTX 45,873]

Easy -- continue to raise tuition every semester with no connection to "value received for money paid."

[Dashinka 24,718]

6 hours ago, TBoneTX said:

Easy -- continue to raise tuition every semester with no connection to "value received for money paid."

You forgot about promoting the value of a university education with no consequences when someone graduates into a menial job.

[Dashinka 24,718]

Wealth redistribution?

 

Biden's Education Department will immediately wipe out out student loan debt for 40,000 borrowers by promising to fix 'longstanding failures' in forgiveness scheme that hit low-income students

 

https://www.dailymail.co.uk/news/article-10732755/Biden-Education-Department-improvements-immediately-wipe-student-loan-debt-40-000-borrowers.html

[millefleur 5,047]

7 minutes ago, Dashinka said:

Biden's Education Department will immediately wipe out out student loan debt for 40,000 borrowers by promising to fix 'longstanding failures' in forgiveness scheme that hit low-income students

Public Service Loan Forgiveness Program forgiveness still requires them to report all forgiven loans as income. So, let's say you had $100k in loans and now that will be forgiven. You'll owe the IRS as if you earned $100k. So, the government will still get a cut, albeit just a smaller amount than the original loan.

[Dashinka 24,718]

21 minutes ago, millefleur said:

Public Service Loan Forgiveness Program forgiveness still requires them to report all forgiven loans as income. So, let's say you had $100k in loans and now that will be forgiven. You'll owe the IRS as if you earned $100k. So, the government will still get a cut, albeit just a smaller amount than the original loan.

But the debt does not actually go away.  Someone still has to pay those loans.

[millefleur 5,047]

7 minutes ago, Dashinka said:

But the debt does not actually go away.  Someone still has to pay those loans.

Right, gets passed on to the national debt I'm assuming? The Public Service forgiveness makes sense, you have to work I think minimum 10 years in a public service job full time to even qualify for it, so they're offering something back to society in return. I assume that's why the number is pretty small, around 40k people....which is a drop in the ocean compared to how many student loan debtors there are out there.

[Dashinka 24,718]

40 minutes ago, millefleur said:

Right, gets passed on to the national debt I'm assuming? The Public Service forgiveness makes sense, you have to work I think minimum 10 years in a public service job full time to even qualify for it, so they're offering something back to society in return. I assume that's why the number is pretty small, around 40k people....which is a drop in the ocean compared to how many student loan debtors there are out there.

That is what makes no sense to me.  If one works at a fairly good job for ten years why weren’t they able to pay off their student loans?

[millefleur 5,047]

26 minutes ago, Dashinka said:

That is what makes no sense to me.  If one works at a fairly good job for ten years why weren’t they able to pay off their student loans?

I also wonder about it. It's also strange to me that the student loans (in this case we're only talking about federal loans) have seemingly no cap and people can take out as many as possible. If a bunch of that debt just gets shifted onto the public via the national debt once forgiveness happens, it seems very reckless of the government. None of makes any sense really. A lot of the public service jobs that qualify do not pay that well. The loan amounts often seem so disproportionate compared to the reality of the jobs people can get. The forgiveness program is like a minor band aid over the bigger issue. I think the vast majority of people who get approved for this forgiveness program do end up with very small amounts in the end, maybe like $10k or so, because as you said they were required to pay the whole time during that 10 years. It would be interesting to see what the average amount forgiven was.

[Dashinka 24,718]

7 minutes ago, millefleur said:

I also wonder about it. It's also strange to me that the student loans (in this case we're only talking about federal loans) have seemingly no cap and people can take out as many as possible. If a bunch of that debt just gets shifted onto the public via the national debt once forgiveness happens, it seems very reckless of the government. None of makes any sense really. A lot of the public service jobs that qualify do not pay that well. The loan amounts often seem so disproportionate compared to the reality of the jobs people can get. The forgiveness program is like a minor band aid over the bigger issue. I think the vast majority of people who get approved for this forgiveness program do end up with very small amounts in the end, maybe like $10k or so, because as you said they were required to pay the whole time during that 10 years. It would be interesting to see what the average amount forgiven was.

This is the biggest issue and the universities know this.  There is no concern for someone over-extending themselves to pay of a very expensive education they could probably get in many cases on their own.

[TBoneTX 45,873]

4 hours ago, Dashinka said:

If one works at a fairly good job

The college graduate with a science degree asks, "Why does it work?"

The graduate with an engineering degree asks, "How does it work?"

The graduate with an economic degree asks, "How much does it cost to make it work?"

The graduate with a Liberal Arts degree asks, "Would you like fries with that?"